“Full coverage” is not an official insurance term in Georgia or any other state. It’s an informal phrase that generally means you carry liability insurance, collision coverage, and comprehensive coverage on the same policy. When a lender or leasing company says you need “full coverage,” they’re requiring those three types of protection so both you and the vehicle are covered. In Georgia, the average cost for this combination runs about $2,909 per year, or roughly $242 per month.
What “Full Coverage” Actually Includes
Georgia’s Office of the Commissioner of Insurance and Safety Fire groups auto insurance into three broad categories: liability insurance, physical damage insurance (which includes both comprehensive and collision), and uninsured motorist insurance. A policy people call “full coverage” typically bundles at least the first two categories together.
Liability insurance pays for injuries and property damage you cause to other people in an accident. Georgia law requires every driver to carry it. The state sets minimum amounts, commonly expressed as a three-number split: $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage (often written as 25/50/25). Those minimums are the legal floor, not a recommended level. Many drivers carry higher limits because a serious accident can easily exceed $50,000 in medical bills alone.
Collision coverage pays to repair or replace your own vehicle after a crash, regardless of who caused it. If you rear-end someone, liability covers their car. Collision covers yours.
Comprehensive coverage pays for damage to your vehicle from events other than collisions: theft, hail, flooding, fallen trees, hitting a deer, vandalism, or a broken windshield. It’s sometimes called “other than collision” coverage on policy documents.
Neither collision nor comprehensive is required by Georgia law. They become mandatory only when a lender or leasing company requires them as a condition of financing. If you own your car outright, you can legally drive with just liability, though that leaves your own vehicle unprotected.
Uninsured Motorist Coverage
Georgia insurers are required to offer you uninsured motorist (UM) coverage, which protects you if you’re hit by a driver who has no insurance or whose insurance is insufficient. The state’s insurance commissioner notes that some drivers either ignore the law or let their coverage lapse, making UM coverage especially practical. You can decline it in writing, but it’s included by default when you buy a policy.
Many people who think of their policy as “full coverage” have UM coverage on it, and for good reason. If a driver with no insurance totals your car or sends you to the hospital, your own UM coverage steps in so you aren’t left paying out of pocket.
What Lenders Typically Require
If you’re financing or leasing a vehicle, the lender will almost certainly require both collision and comprehensive coverage for the life of the loan. They’ll also usually set a maximum deductible, often $500 or $1,000. The deductible is the amount you pay out of pocket before insurance kicks in. A higher deductible lowers your premium but means you pay more upfront after a claim.
Some lenders also require gap insurance, which covers the difference between what your car is worth and what you still owe on the loan if the vehicle is totaled. This is separate from collision and comprehensive, so even a “full coverage” policy may not include it unless you add it.
Georgia’s Diminished Value Rule
Georgia has a unique legal protection worth knowing about. After your car is repaired following an accident, it’s often worth less than it was before the wreck, even if the repairs were done perfectly. That loss in resale value is called “diminished value.” Since a 2001 Georgia Supreme Court ruling in State Farm v. Mabry, auto insurers in the state are required to compensate policyholders for that difference.
This means if another driver hits your car and their insurance pays for repairs, you can also file a diminished value claim for the drop in your car’s market value. You don’t need to file a separate claim under a special policy. The court held that value, not just condition, is the baseline for measuring damages, so a repaired car that’s worth less than before the accident still represents a compensable loss.
How Deductibles Affect Your Premium
Both collision and comprehensive come with their own deductibles, and you can usually choose different amounts for each. Common options are $250, $500, and $1,000. Choosing a $1,000 deductible instead of $250 can meaningfully reduce your annual premium, but it also means you need $1,000 available if you file a claim. The right choice depends on how much cash you could comfortably cover after an unexpected incident.
Optional Coverages to Consider
Even a “full coverage” policy has gaps. Several add-ons are available that fill common holes:
- Rental reimbursement: Pays for a rental car while yours is being repaired after a covered claim. Without it, you’re responsible for transportation costs during repairs.
- Roadside assistance: Covers towing, jump-starts, lockouts, and flat tire changes. It’s typically inexpensive to add.
- Medical payments (MedPay): Pays medical bills for you and your passengers after an accident, regardless of fault. It works alongside health insurance and can cover copays and deductibles your health plan doesn’t.
- Gap insurance: Covers the shortfall between your car’s actual cash value and your remaining loan balance if the car is totaled.
What Georgia Drivers Pay on Average
Full coverage in Georgia averages about $2,909 per year. A minimum-coverage policy (liability only, at state-required limits) averages around $1,046 per year. That roughly $1,860 difference is the cost of protecting your own vehicle with collision and comprehensive coverage.
Your actual rate will depend on your driving record, age, credit history, vehicle type, zip code, and the coverage limits and deductibles you choose. Drivers with clean records and newer vehicles with safety features tend to pay less. Shopping quotes from multiple insurers is the most reliable way to find a lower rate, since companies weigh these factors differently and the cheapest option varies widely from one driver to the next.